Answer to Question #56208 in Economics for Ying

Question

What is the federal reserve ? (Explain)

Answer 1

Federal Reserve was created by US congress in 1913 for studying and implementing monetary policy.
It is an independent entity, but it is also oversight by Congress.
The Federal Reserve fulfils the next functions:
- conducting the nations monetary policy by influencing money and credit conditions in the national economy;
- supervising and controlling banks and other financial institutions;
- maintaining the stability of the financial system;
- providing financial servce to the US government.